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26 January, 13:18

Categorize each of the following examples as a horizontal, vertical, or conglomerate merger. Horizontal Vertical Conglomerate A shoe manufacturer merges with a media and entertainment corporation. A car manufacturer merges with a tire producer. In 1997, two producers of commercial airplanes merged to form a single company.

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  1. 26 January, 14:29
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    1. Conglomerate merger

    2. Vertical merger

    3. Horizontal merger

    Explanation:

    Horizontal merger is the combination of two companies that manufacture the same products. Both companies are on the same manufacturing process level.

    Vertical merger is the merger of two companies that manufacture various products but one company's production is used as the raw material for another company. This merger happens on separate development level.

    The conglomerate merger is the merger of the firms having various sectors.

    So according to the above explanation, the classification is as follows

    1. A shoe manufacturer merges with a media and entertainment corporation. = Conglomerate merger

    2. A car manufacturer merges with a tire producer. = Vertical merger

    3. In 1997, two producers of commercial airplanes merged to form a single company = Horizontal merger
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